CONSUMER CONFIDENCE REMAINS HIGH
Spring’ s tariff-induced trade war underscored the potential for a weakened consumer base across all markets. But Greenblatt says the gaming sector historically has not been impacted by waning consumer confidence. Certainly in the UK, the sector is not seeing any indication of consumer weakness.
“ The demand side continues to be very robust,” says Greenblatt.“ We’ re seeing it both in bet count and handle, deposit patterns and deposit value. We’ re not seeing any indication within bet size, like average bet size – it’ s business as usual, frankly.”
For the year ended 31 December 2024, BetMGM posted group revenue of $ 2.1 billion(£ 1.69 billion), up 7 % yearon-year. However, the group reported a negative EBITDA of $ 244 million, a figure which marked a drop worse than its EBITDA losses of $ 62 million the previous year.
COST-CUTTING UNDER WAY
The BetMGM CEO stated that the group is committed to its full-year 2025 positive EBITDA target of $ 240 million. To achieve this target, the group has embarked on a cost-saving journey. As part of this, BetMGM decided to cut staff at its New Jersey headquarters in February by letting 83 people go.
Similar cost-saving measures have been carried out at MGM Resorts. Hornbuckle noted in March various fees for hotel and resort goers had increased to plug a hole. BetMGM JV partner Entain has similarly sought to improve efficiencies and consolidate various departments to reduce expenses and return the company to growth over the last couple of years.
Looking forward, Greenblatt tells iGB that he is feeling“ really good” about the BetMGM business’ underlying KPIs.
“ We have a blueprint that we’ re executing against and it’ s working. So, unless something comes up which destabilises that, I feel pretty good about delivering against our commitments this year,” says Greenblatt.
He sees BetMGM as an educator for regulators and lawmakers in the US. It aims to help them understand the sector’ s complex model and why blanket gambling tax increases are not the answer to increasing state revenues. As with many in the industry, the company says it wants to create and foster an environment that is“ supportive” for regulated operators, as it believes that this is in the consumer’ s and taxpayer’ s best interests.
NO NEW OPENINGS EXPECTED
BetMGM launched its sportsbook in two new US jurisdictions in 2024: North
Carolina and Washington DC. However, with no new iGaming licences coming over the horizon, the operator has been focusing on cutting costs and improving its product in the states it already operates in.
While Greenblatt tells iGB that he does not expect any new gaming states this year, he believes“ winds are blowing” that indicate a change in momentum, ushering in a new era for the sector. The BetMGM leader notes that certain pressures and issues are becoming more visible, such as state level budget deficits, futures contracts and the impact of sweepstakes.
“ It feels like we’ re moving towards a big change in momentum, positively. I think what we’ re going to see is the determination that gambling, sports wagering, futures contracts are illegal, except as regulated by states. This is a states’ rights item,” Greenblatt says.
He is critical of the rise and rise of unlicensed betting-adjacent offerings like predictive markets.
Some states have already taken a hardline position. In March, the Maryland Lottery and Gaming Control Agency targeted unregulated sweepstakes casinos in the state. It sent a ceaseand-desist letter to the operator Virtual Gaming Worlds, owner of sweepstakes sites Chumba Casino and LuckyLand Slots. Predictive markets providers Kalshi and Robinhood were also presented with cease-and-desist letters in Nevada and New Jersey in March.
Greenblatt says the journey that lies ahead is one of heightened licensing and enforcement.
“ There is a framework for this. Get a licence and you’ re free to participate. I think that’ s the only path forward. And then the question is, well, how aggressive will enforcement be, and what tools do they have, and what is their appetite?”
iGB L! VE 2025 • ISSUE 138 • 23